Measuring the success of various campaigns is an essential part of the job of a marketer. It’s critical to understand how your marketing efforts affect the bottom line of your company. However, according to Social Media Today, 70% of online businesses that use social media do not bother to track ROI.
It’s quite shocking to learn that the vast majority of online businesses conduct their social media marketing completely in the dark, with no idea how social media contributes to their company’s success. To be fair, it’s not entirely their fault — social media ROI is a difficult beast to tame, and it’s the bane of marketers everywhere.
How To Calculate Social Media ROI
We’ve discussed why it’s traditionally difficult to measure social media ROI and where social media fits into the larger marketing picture. So, how exactly do we calculate social media ROI? Let’s find out!
Analytics Tools Built Into Social Media Platforms
Understanding the need for marketers to measure their social media performance, many social media sites include built-in analytics tools for tracking engagement, likes, shares, and so on. To name a few, there are Facebook Insights, LinkedIn Company Page Insights, and Pinterest Web Analytics.
These social media tools are useful for measuring your performance within the social media platform, but they don’t show how your social media actions affect the bottom line or contribute to conversions, which usually occur outside of the platform and on your own site.
Facebook Offers can help by offering online coupon offers that can be redeemed offline. This allows marketers to test how social media actions can be converted into in-store purchases. Facebook Offers work in the same way that Google Offer Extensions for AdWords do, allowing AdWords advertisers to attach a discount coupon to a Google ad.
Google Analytics is the most powerful tool for calculating the return on investment from social media. Google Analytics social reports can show marketers the impact of social actions, which social networks are producing the best results, which content is popular, and how social can lead to conversions.
Google Analytics is updated on a regular basis, with changes to where certain reports are nested. This is the most recent configuration of Google Analytics’ social reports section.
Conversions Must Be Determined
This enables businesses to determine what constitutes conversion and the monetary value of the conversion. It’s up to you whether a conversion is an ebook download, an online purchase, or filling out a form. Once these objectives are established, Google Analytics can show you which conversions come from which social media platforms.
The Conversions tab is critical for comparing social media ROI to other marketing initiatives. Key performance indicators are just as important for measuring social media ROI as they are for other types of marketing.
Plugins: This section deals with on-site engagement, displaying which social buttons on your site are being clicked and what content is being shared.
Visitor Flow: Visitor Flow illustrates the path that different users take as they click through to your site from various social media sites. Visitor Flow displays which web pages users arrive at via social media platforms, their subsequent interactions on your site, and where drop-offs occur.
URL Tracking: Google Analytics includes a feature that allows users to add custom URL parameters to their thank-you goal pages, allowing marketers to track the amount of traffic generated by any given campaign.
The Google Analytics URL Builder simplifies this process by allowing you to append information to the end of a URL that tells Google Analytics about the campaign, medium, and source of where the link originated or was posted.
The resulting URL is usually quite long, but it is easily shortened and shared on social media platforms such as Twitter and Facebook. You can then look for the appropriate parameter in Analytics to see when people come to your site from a social network.
The custom URL parameters work in tandem with Google Analytics to demonstrate how effective various campaigns are at delivering conversions. When using marketing automation software like Marketo, this data can even be synced with sales data.
These Google Analytics social reports and features are huge assets that help marketers calculate the ROI of social media, assist businesses in determining the value of social media, and determine how social media marketing contributes to the bottom line.
ROI Is Important
Hopefully, you now have a better understanding of how social media ROI can – and cannot – be measured, and, most importantly, its importance for your business performance measurement. What you should do next is to get in touch with a social media marketing company that can run your social media campaign and give you an exact measurement of your ROI for the campaign.
In this manner, Infini Social is the best. Infini Social is a leading social media marketing company that can boost your brand’s ROI through a well-organized and executed social media campaign. Chat with our experts today to get started.